When it comes time for a medical device company to select a supply vendor, many factors must be taken into consideration. Medical devices are not the simplest products as they are expected to carry a lot more risk in their design, therefore its imperative for a PM of a medical device company to hire a supply chain manager (SCM). It is the SCM’s responsibility to form a strategic sourcing plan when choosing a vendor to avoid unnecessarily high manufacturing costs while receiving their required supplies in an effective manner. Strategic sourcing differs from standard purchasing by having both parties form a more intricate relationship. This can involve both companies disclosing discrete information to each other in an attempt to develop an efficient long term solution that provides the medical device company with a consistent supply of discounted goods while optimizing profit for the vendor.

The concept of strategic sourcing is primary for a medical device company because of the time constraints that certain medical devices face. For example, a cell-based product intended for infusion requires temperature and time-sensitive cell media, serum, as well as other expensive additives that requires them to be stored and processed in a strict manner. This states that the medical device company must receive these supplies in a timely manner and store them before they risk becoming compromised. Failure to do so can result in high losses, which further emphasizes the importance of acquiring supplies at a cheapened cost by finding ways to further improve the manufacturer-supplier relationship.

Do partnerships between such companies develop quickly, or is it customary for a contract to be made initially? What if the medical device is still in its pre-clinical/clinical phase and is therefore susceptible to change in its design, how can this affect the expectations from a vendor? Are there any capabilities that a PM can make that a SCM cannot towards improving a sustainable supply chain for their product?